03 Aug 2015

Comment: Landlord’s wear and tear allowance to be scrapped

Comment: Landlord’s wear and tear allowance to be scrapped


Adrian Sangster, Leasing Director, comments on a recent announcement affecting landlords.

In addition to cutting tax relief on mortgage interest, the UK Government also confirmed in the summer budget that the wear and tear allowance for landlords of furnished rental properties (which allows 10% of rental profits to be discounted) will be scrapped in April 2016.

Changes to the allowance

It is being replaced with a new kind of furniture relief allowance which only allows landlords to deduct actual incurred costs when they are forced to replace furnishings and fixtures in rental properties.

The wear and tear allowance currently only applies to landlords of fully furnished rental properties. However, the proposed change means that the relief will apply to all landlords, no matter what level of furnishings are provided.

The HMRC have published a detailed consultation document and are inviting landlords, letting agents, tax advisors, professional bodies and other interested parties involved in the private rented sector to take part. The consultation document can be found here and closes on 9th October 2015.

Points of view

Landlords who offer unfurnished and part furnished properties will probably view these changes positively, however those who have fully furnished properties are most likely to face a higher tax bill, and therefore will not welcome the proposed changes.

Industry bodies who represent landlords and letting agents are asking the Chancellor to reconsider these amendments because of the concerns that they will have a serious impact on the supply of properties in the sector.

Adrian Sangster, Leasing Director


Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Tick this box if you wish to receive news and offers from Aberdein Considine. By doing, you indicate your consent to receiving targeted email marketing messages from us. On each occasion that we contact you in the future, you will be given the option to opt-out from receiving such messages. You may also email marketing@acandco.com at any time to opt-out.

The personal information that you provide to us in this form will only ever be used by Aberdein Considine (as the Data Controller) for the following specifically defined purposes:

  • email you content that you have requested from us
  • with your consent, occasionally email you with targeted information regarding our service offerings
  • continually honour any opt-out request you submit in the future
  • comply with any of our legal and/or regulatory obligations